FO 0633/22
00 FCO
00 WELLINGTON
PP KUALA LUMPUR
GR 500
CYPHER/CAT A
in Raya
IMMEDIATE
#KK 1841.
27 FEB 1978
DESK OFFICER
INDEX
PA
No
аб
8.51
PENS.KY Acton Tanes
1106
Rimit the
m. Buziews. Ud MARD
ap
SEAO Leve
1455
ADVANCE COPY
Perus)
103
FM HONG KONG 228937Z
CONFIDENTIAL
TO IMMEDIATE F.C.O TELNO.299 OF 22 FEBRUARY 78,
INFO IMMEDIATE WELLINGTON (FOR ROGERS),
PRIORITY KUALA LUMPUR.
WELLINGTON TELNO.45 OF 21 FEB: U.K/MALAYSIA AIR SERVICES.
1. WE ARE QUITE UNABLE TO RECONCILE THE VIEWS EXPRESS IN TEL UNDER REF WITH THE FACTS OF THE SITUATION NOR TO ACCEPT THE CONCLUSIONS REACHED.
2. AS REGARDS PARA.3 OF TEL UNDER REF:
(A) (B) OUR VIEWS ON SUBSTITUTION OF 707'S FOR 737'S REMAIN AS STATED IN OUR TELNO.149. THE MALAYSIANS ARE WELL AWARE OF THE SENSITIVITY OF THE MASSIVE REGIONAL IMBALANCE AND WE HAVE BEEN ASKED BY THEM TO MAKE ANY REASONABLE DEMANDS FOR INCREASED RIGHTS FOR CPA TO ACHIEVE A BETTER BALANCE OF EARNINGS RATHER THAN CUT BACK ON MAS SERVICES. WE DO NOT THEREFORE ACCEPT THAT IT WOULD BE DIFFICULT AS A MATTER OF EQUITY TO RESTRAIN MAS CARRIAGE HKG/ BKI TO ITS PRESENT LEVEL IN GRANTING THEIR REQUEST FOR A CHANGE OF AIRCRAFT TYPE.
(C) THE VIEWS EXPRESSED ARE ENTIRELY CONTRARY TO OUR INFORMATION
AND UNDERSTANDING OF THIS ISSUE WHICH IS THE GENERALLY REPORTED AND ACCEPTED UNDERSTANDING. THE RESENTMENT CENTRES ON PAYMENT TO B.A. FOR MAS'S TRUNK ROUTE SERVICES AND ALLEGED FAILURE TO TREAT WITH THE MALAYSIANS ON THIS ISSUE IN THE MANNER THEY EXPECTED IN THE LIGHT OF MY SUB-PARAGRAPH ABOVE, WE CANNOT BELIEVE THAT THE RESENTMENT CENTRES AROUND THE COMPARATIVELY MINOR CONCESSIONS
EVENTDA WNCUEN